Friday, November 29, 2013

“I compare it to what’s happened in Detroit, where 10 years ago we knew they were broke, and finally, one day they said they were ‘broke.’ The outcome of that was they told the pensioner, ‘You can only get 33 cents on the dollar.’ And the same will happen to the US (pensioners).

What happens when someone’s (social security or pension) check falls by 50% or 60%? The economic chaos that will ensue will be unbelievable. But it’s going to happen. It’s so clear cut there is nothing that can be done about it. The whole world has this huge debt problem. If you have this view that the countries are insolvent, what does it mean for all of us? I’m talking about, as human beings, how is everyone going to survive? It’s a scary prospect.

We don’t have enough jobs and income to support the profligate governments that we have. We just don’t have enough. The disposable personal income and wages keep going down. We have 50 million people on food stamps, and we get 10,000 people a day retiring. Anybody, mathematically, can tell you we can’t afford it.

What do we cut first? So far in the US they have cut nothing. It’s interesting, Eric, by analogy, even in Canada, which has a pension fund, people under 35 have already been told that they can’t retire until they are 67. We (Canadians) know we don’t have enough, and we have a fund with money in it. In the US there is no fund. They pretend that there is some fund there, but there is literally nothing in the fund. So there are going to be some (horrific) consequences down the line.”

Friday, November 22, 2013

“The United States is already insolvent. They announced their own GAAP budget deficit, which was $6 trillion last year. $6 trillion! They (only) had revenues of $3 (trillion). And the combined debt and entitlements is now $60 - $70 trillion.Now, can you expect somebody with $3 trillion of annual revenue to be able to deal with $60 trillion of debt? It’s impossible. So, mathematically it’s over...."- Eric Sprott via King World News:

Wednesday, November 20, 2013

“The numbers speak for themselves. In 2012 I wrote that I can see 2,200 tons of net new buying per year in a market that produced (only) 2,700 tons (of gold). That was back in 2012. Just think, Eric, in the 12 months to August of 2011, China imported something like 100 tons (of gold). Now they import 1,200 (tons of gold). They’ve increased their tonnage (of gold purchases by a staggering) 1,100 tons.

If the total (world) supply, including recycling is 4,000 (tons), which I highly doubt, that means they’ve come in and bought an extra 25% of the market. How can somebody come in and buy an extra 25% of the (entire global) market at that same time that the price falls by 30% or 40%? It’s just totally ridiculous that it would ever manifest itself that way. If they bought (an additional) 25% of the oil, wheat, or the corn markets, the price would not be going down.”

- Eric Sprott via a recent King World News interview, read the full interview here:

Saturday, November 16, 2013

“We have never printed on a daily basis more than we are printing right now, and all the while, interest rates doubled! Just the talk of tapering moved the rates significantly higher. I happen to believe that they have lost control of the bond market. Just by talking the talk the rates doubled and if they walked the walk, I think we would see a dramatic increase in rates here and severe carnage in the bond market.”

Thursday, November 14, 2013

“Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….

Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.”

Tuesday, November 12, 2013

“We’ve had so many false starts (and promises) -- ‘The economy is going to be great in 2010,’ and it’s not. ‘It’s going to be great in 2011, 2012, 2013,’ and it’s not. Now, they are already talking about it being ‘great in 2014.’ But we are actually regressing, even though they (central planners) don’t want to admit it, because the numbers are all manipulated in one way or another.

It will happen that gold will be accepted as the asset to back a (major) currency. And the currency with the most gold behind it, which I suspect is already the Chinese yuan, and growing rapidly, will be the dominant currency going forward. Of course this doesn’t portend well for all of the central planners currencies. They (the Chinese) are doing the smart thing by buying real physical assets. So I guess the best way of putting it is, just follow the Chinese, my friend, and you are going to be OK here.”

Sunday, November 10, 2013

"You can look at the facts on physical demand for gold and silver. You can look at the facts on government deficits, and you just have to take yourself to where it’s going (the end game). And whether it happens in a year or two, it’s going to happen...."

Friday, November 8, 2013

In his recent Markets At A Glance article, Eric Sprott criticized the World Gold Council on the quality of their gold demand data. In response, the WGC issued a statement on Thursday standing by their figures. Tune in to see what Eric Sprott has to say in return!

Wednesday, November 6, 2013

“There is an interesting thing going on there, Eric. We get data out of India. They consumed slightly less than 2,000 tons of silver late year. It would appear they are going to consume 6,000 tons this year....

It might be a little early for me to say that because as gold has been restricted, that number might even be well above that (total of 6,000 tons of silver). In the first 8 months there were something like 4,000 tons (already consumed), so we are just extrapolating that trend, but the trend was gaining strength as the year went on.

But when you (as India) buy an extra 4,000 tons of silver in a year, you are buying an extra 17% of the (entire global) market. So we have a new entrant into the (silver) market who takes down 17% of the supply, and the price goes down. It’s the same analogy as China buying gold. They (China) buy 25% more of the (entire global) market and the price (of gold) goes down.

Those things don’t hold together. Logically this should not happen (the price of silver going down). So, I’m very optimistic on silver. The US Mint silver sales have just been booming here. They are still 50/1 in terms of the physical relationship to gold at the US Mint. We (only) produce 11-times more silver (than gold). We (only) have about 3-times more silver (available) for investment, and yet investors, via the (US) Mint, are buying it at a 50/1 ratio to gold. That cannot persist too long without the price of silver going up (substantially).”

Monday, November 4, 2013

“Obviously I believe everything that Andrew has said, including the information that he had given to the SEC when they didn’t follow-up on it. I heard him speak in London in 2011, and I believe everything he has done is absolutely correct.

When he gives interviews with you, and he tells you about the tonnage that moves around, sure enough you see it — then the GOFO rate goes negative. Obviously there is a huge shortage of gold, which everyone is trying to cover up. So I believe totally in what Andrew says, and I think he’s been a great spokesperson for the gold community.”

Saturday, November 2, 2013

Join us on our discussion with John Embry, Chief Investment Strategist of Sprott Asset Management, and Peter Spina, President and CEO of GoldSeek.com in regards to the US debt ceiling and its implications on gold and silver.